In an industry where employee turnover rates hover around 73.8% and staffing shortages continue to challenge operations, hospitality leaders are looking for creative solutions to the problem. One emerging perk: earned wage access (EWA).
This financial wellness benefit is proving to be a game-changer for hotels and resorts looking to attract and retain talented staff while improving employee satisfaction and operational efficiency. And with no cost to the business, EWA punches far above its weight as a high-impact, low-effort benefit.
The Real Cost of Turnover in Hospitality
Every hospitality leader knows the drill: a valued employee leaves and the domino effect begins. Training costs mount, service quality temporarily dips, and remaining staff feel the pressure of increased workloads. With the average cost of replacing a hotel employee ranging from $4,000 to $14,000, turnover isn't just an HR headache—it's a significant drain on your bottom line.
The hospitality industry's unique characteristics make it particularly well-suited for EWA. The seasonal nature of the workforce, combined with many lower-income or entry-level staff, contribute to a significant percentage of hospitality workers living paycheck to paycheck.
Irregular Income Patterns
Tips and varying shift schedules mean hospitality workers often face unpredictable income streams. EWA provides stability by allowing employees to access their earned wages when they need them most.
High Percentage of Hourly Workers
With most hospitality staff paid hourly, the traditional bi-weekly pay cycle can create financial stress, especially when unexpected expenses arise. EWA bridges these gaps, reducing employee anxiety and financial pressure.
Competition for Talent
In a tight labor market, innovative benefits like EWA can be the differentiator that attracts top talent to your property instead of your competitor. As we’ll see in the next section, the summer season adds a layer of urgency and importance for hospitality leaders.
Winning the Summer 2025 Staffing Challenge
With peak season approaching, the pressure to build and maintain a robust summer workforce is mounting. Industry forecasts predict record-breaking tourist numbers for summer 2025, making adequate staffing more critical than ever. By allowing staff to “work today, get paid today,” EWA could be your secret weapon for summer hiring success.
Accelerated Recruitment
Properties offering EWA are seeing faster time-to-hire rates when recruiting seasonal staff. Today's workers, especially younger generations, are actively seeking employers who offer modern financial benefits or can support payroll cycles shorter than the traditional two weeks.
Seasonal Staff Retention
The first few weeks of employment are crucial for seasonal worker retention. EWA helps new hires manage the financial gap between starting work and receiving their first paycheck, reducing the likelihood they'll seek other opportunities during this critical period and help keep your property running smoothly.
Enhanced Summer Benefits Package
While it's still relevant to focus on traditional seasonal perks like meal allowances and overtime bonuses, EWA provides a unique differentiator in your summer hiring package. One restaurant that worked with seasonal and part-time staff saw that offering EWA helped them ensure their locations were fully staffed and employees were engaged.
Flexible Scheduling Support
Summer often requires staff to work variable shifts and longer hours. EWA supports this flexibility by ensuring employees can access their earnings when they need them, making them more willing to pick up additional shifts during peak times. This business found EWA to be easy to add to their payroll system and it paid dividends in recruiting and retention.
The Move to Modern Pay
As the hospitality industry continues to evolve, staying competitive means thinking beyond traditional benefits. EWA represents more than just a payroll perk—it's a strategic tool that addresses core challenges in hospitality workforce management.
The question isn't whether to offer EWA, but rather: How quickly can you implement it before your competition does? With the busy season right around the corner, waiting to bring this benefit to your workforce could mean less staff and more stress.
Ready to learn how EWA can transform your hospitality business? Contact us to discover how leading employers are using EWA to build stronger, more empowered teams.
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